Archive for November, 2008

Treasury and Corporate Close

Tuesday, November 4th, 2008

Prices of Treasury coupon securities surged today as the massive buying in spread product markets percolated into the treasury market. The yield on the 2 year note dropped 6 basis points to 1.37 percent. The yield on the5 year note dropped 16 basis points to 2.54 percent. The yield on ...

Agency Market

Tuesday, November 4th, 2008

Agency spreads participated in the spread product orgy as spreads moved sharply narrower. Two year spreads are tighter by about 15 basis points and 5 year spreads have narrowed about 12 basis points. Ten year spreads have edged lower by about 8 basis points.All of the Agency benchmarks have rallied ...

Mortgages and Swaps

Tuesday, November 4th, 2008

Mortgages tightened significantly today to swaps. There was robust demand from servicers, money managers and bank portfolios. The impetus was the improvement in financing which made mortgages more attractive because of the increase in carry return.There was also buying of 5 1/2s as they traded near 98-0 . That has ...

Miscellany

Tuesday, November 4th, 2008

Mortgage rolls are showing improvement since my last posting. I have received several emails to that effect and mortgages have improved about 1/4 point since I wrote a few minutes ago. The Treasury market is pretty quiet considering the rally in stocks and the Niagra Falls of supply which will soon ...

Swaps and MBS

Tuesday, November 4th, 2008

Swaps are tighter by 4 1/2 basis points in the 2 year sector with spreads at 119 basis points. Five year spreads have narrowed 1 3/4 basis points to 108 3/4 basis points. Ten year spreads are tighter by 3/4 basis point at 51 3/4 basis points. Thirty year spreads ...

IG 11

Tuesday, November 4th, 2008

IG 11 is opening 5 better at 197/198 1/2. 

From the You Cant Make This Up Department

Tuesday, November 4th, 2008

Via the blog Clusterstock a story about a very interesting hire at the New York Fed.

Libor Opening

Tuesday, November 4th, 2008

Libor US$ Fixing                  11/04        11/03      Change          OVERNIGHT       .37500       .38750    -.01250 1 WEEK          .98125      1.04375    -.06250 2 WEEKS        1.32500      1.45000    -.12500 1 MONTH    ...

Some Opening Thoughts November 4, 2008 and a Long Digression on the Election

Tuesday, November 4th, 2008

Prices of Treasury coupon securities are registering, on balance, small losses in overseas trading. The yield on the benchmark 2 year note has climbed 4 basis points to 1.48 percent. The yield on the 5 year note has edged higher by a basis point to 2.71 percent. The yield on ...

Closing Thoughts November 3 2008

Monday, November 3rd, 2008

Prices of Treasury coupon securities registered mixed changes today in a lackluster session dominated by an air of waiting and anticipation. Participants await the outcome of the election tomorrow and the refunding announcement on Wednesday. Later in the week, participants will focus on the labor data. Market News International reports ...